Fitbit Woes: Product Complaints, Lawsuits and Tanking Stocks

What's Hot

How to Cut the Cable TV Cord in 2017Family

8 Major Freebies and Discounts You Get With Amazon PrimeSave

Study: People Who Curse Are More HonestFamily

8 Creative Ways to Clear ClutterAround The House

15 Things You Should Always Buy at a Dollar StoreMore

Pay $2 and Get Unlimited Wendy’s Frosty Treats in 2017Family

5 Reasons to Shop for a Home in DecemberFamily

This Free Software Brings Old Laptops Back to LifeMore

Should You Donate to Wreaths Across America? A Lesson in Charitable GivingAround The House

6 Reasons Why Savers Are Sexier Than SpendersCredit & Debt

Resolutions 2017: Save More Money Using 5 Simple TricksCredit & Debt

10 Free Things That Used to Cost MoneyAround The House

7 New Year’s Resolutions to Make With Your KidsFamily

10 Simple Money Moves to Make Before the New YearFamily

The 3 Golden Rules of Lending to Friends and FamilyBorrow

The wearables tech company is suffering a bout of ill health as it faces two separate lawsuits, plunging share prices and a lukewarm reception to its newest gadget.

If Fitbit Inc. could hit rewind or reset on 2016, it probably would.

Just two weeks into the new year, the top-selling wearables tech company has been hit with two class action lawsuits, lukewarm reception for its newest wearable device and falling share prices.

Fitbit’s first blow of 2016 came at the tech industry’s annual blowout event — the Consumer Electronics Show in Las Vegas — where it unveiled its Fitbit Blaze watch and received a less-than-enthusiastic response.

According to the Silicon Valley Business Journal, although Fitbit likely thought the $200 fitness watch was “a smart add-on to its line of fitness-tracking wearables [it looks] like weak tea when compared to the Apple Watch, with its apps and connections to the iPhone.”

The SVBJ said the wearable tech company’s stock “meltdown” began immediately following the launch of the fitness watch.

Just a day after the Blaze’s cool reception at the tech trade show, Fitbit was slapped with a consumer-filed class action lawsuit accusing it of false advertising regarding its devices’ heart rate monitoring system, Bloomberg reports. The suit, filed Jan. 6 in a San Francisco federal court, claims that Fitbit’s heart rate monitoring devices are “wildly inaccurate,” sometimes “mis-recording heart rates” by 50 percent.

“We do not believe this case has merit,” Heather Pierce, a spokeswoman for the company, said in an email to Bloomberg. “Fitbit stands behind our heart rate technology and strongly disagrees with the statements made in the complaint and plans to vigorously defend the lawsuit.”

On the heels of the legal action on behalf of consumers, Fitbit’s legal troubles intensified when an investor filed a class action lawsuit against Fitbit over alleged “fraud on the market” and U.S. securities law violations, Fortune reports.

The latest suit seeks compensation for people who bought Fitbit shares during the IPO last summer through last week, when allegations of Fitbit’s inaccurate heart monitors became known and stock prices tumbled on Jan. 6.

The investor complaint – which alleges that the company made “false and misleading” statements about its heart monitoring technology – reads:

“As a result of Defendants’ false and/or misleading statements, Fitbit securities traded at inflated prices. However, after disclosure of Defendants’ false and/or misleading statements, Fitbit’s stock suffered a precipitous decline in market value, thereby causing significant losses and damages to Plaintiff and other Class members.”

A Fitbit spokesperson told Fortune:

“We have reviewed the [investor] complaint and believe it is meritless. We intend to defend this case vigorously.”

Fortune said shareholder lawsuits like this are fairly common when a company’s reputation takes a public hit, like Fitbit’s did last week with the heart monitoring lawsuit.

According to CBS, Fitbit Inc. shares dipped on Monday, falling below the initial public offering price of $20 before climbing back toward $20 on Tuesday.

Do you have a Fitbit? What do you think of the class-action lawsuit claiming its heart monitoring tracking is inaccurate? Share your thoughts below or on our Facebook page.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!


Read Next: The Best Things to Buy in January

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,803 more deals!